Modern Mining October 2018

October 2018 Vol 14 No 10 www.crown.co.za M ODERN MINING IN THIS ISSUE…

 Makoko – a significant copper discovery  Innovative dredge delivers its first diamonds  Major milestone for the Platreef project  Namdini shaping up to be a great gold mine

MODERN M I N I N G

CONTENTS

OCTOBER 2018

ARTICLES

COVER 18 Volvo’s new ‘heavyweights’ expand Babcock’s mining line-up DIAMONDS 22 Innovative diamond dredge proves itself on first test run PLATINUM 26 Platreef’s Shaft 1 reaches the ‘Flatreef’ deposit GOLD 30 Positive PFS a big step forward for Namdini MANGANESE 34 Strong start at Kalagadi FEATURE: HEALTH AND SAFETY IN MINING 36 ASPASA broadens its base 38 Fogmaker put through its paces at Electra Mining 41 MSA celebrates mine safety with John T. Ryan Awards REGULARS MINING NEWS 4 Teranga increases gold reserves at Wahgnion 5 Twin Hills gold anomaly doubles in size 6 Liqhobong delivers an“exceptional performance” 7 Minergy awards contracts for Masama mine 8 Indicated resource at Block 14 grows to 3,3 Moz 9 Top Empowerment rating for Zest WEG 10 Re-discovered kimberlites were past producers 12 Year of achievement for Rainbow at Gakara project 13 Drilling intersects significant mineralisation at Wassa 14 Ivanhoe makes another major discovery in the DRC 15 Yanfolila to get a second ball mill 16 New gold zone identified at Makabingui 17 DRA confirmed as preferred EPCM contractor for Colluli PRODUCT NEWS 44 Weir Minerals provides pontoon solution at Madagascar mine 44 Reagent solutions for improved dewatering applications 45 New TOMRA sorter a game-changer 47 New technology allows remote monitoring of motors 48 Mineral analysers drive value in chrome industry 49 Kal Tire innovation wins award at Electra Mining 50 Pump range offers new levels of hydraulic efficiency 51 Industrial gear units supplied toWest African mine 52 Hytec offers on-site hose and fitting service for mines

Editor Arthur Tassell Advertising Manager Bennie Venter e-mail: benniev@crown.co.za Design & Layout

Darryl James Circulation Brenda Grossmann Publisher Karen Grant

8

Deputy Publisher Wilhelm du Plessis Printed by: Shumani Mills Communications

The views expressed in this publication are not necessarily those of the editor or the publisher.

Published monthly by: Crown Publications cc P O Box 140, Bedfordview, 2008

12

Tel: (+27 11) 622-4770 Fax: (+27 11) 615-6108 e-mail: mining@crown.co.za www.modernminingmagazine.co.za

18

Cover A Volvo L350H wheel loader loads Volvo A60H haulers at Steyn Diamante’s Schutsekama mine. See page 18 for a story on the new ‘heavyweight’ machines from Volvo available from Babcock, the Southern African dealer for Volvo Construction Equipment.

22

Average circulation (April–June 2018) 4929

26

October 2018  MODERN MINING  1

COMMENT

Sudan – the new gold frontier

A lthough we are often told that South Africa’s gold mining in- dustry is pretty much in its death throes, the country is neverthe- less still the biggest gold pro- ducer in Africa with 2017 production hav- ing amounted to around 150 tonnes – which makes it the world’s eighth biggest producer. If I were to ask readers which countries are the second, third and fourth rated gold producers on the continent, they would prob- ably answer that Ghana, whose production is currently running at around 80 tonnes of gold a year, is in second place followed by Mali (approximately 60 tonnes) and Burkina Faso (about 55 tonnes) in third and fourth places respectively. If our readers were to answer like this, they would be wrong. Ghana, in fact, no longer holds the number two spot. Its place in the rankings – if I am to believe the figures I see on the Internet – has been usurped by Sudan, which has tradi- tionally not been seen as a gold-mining country and which has very few commercial-scale gold mines. Indeed, the only one I can think of is the Hassai open-pit gold mine, which was opened in the 1990s. As far as I know, Hassai is still operating although some diligent ‘googling’ fails to shed much light on its current status. Somewhat like Burkina Faso, Sudan has come from nowhere as a gold producer. Ten years ago, its gold output was insubstantial – probably no more than two tonnes a year. Since then the growth has been meteoric but almost entirely fuelled by artisanal miners. The 40-tonne-a-year mark was reached in 2011 and the 100-tonne mark was passed last year, with approximately 105 tonnes being produced. This year is developing into the best year yet, as Sudan’s Minister of Minerals reported in July that production over the first six months of 2018 was around 63 tonnes, which means that the total for the year could easily be 120 tonnes. One might ask why the evidently huge gold resource in Sudan has not attracted more interest from western mining companies. I imagine the answer would be that the country is not perceived as being a particularly stable jurisdiction (one thinks of the unrest in Darfur a few years back and the secession of South Sudan in 2011). Nevertheless, there is at least one western company, Canada’s Orca Gold, listed on the TSX-V and headquartered in Vancouver, which has entered the country in a big way (see also page 8 of this issue), investing significant sums in its Block 14 project, located

in the desert 900 km north of Khartoum. Orca has been in Sudan since 2011 (at that stage the company was still known as Shark Metals) and since then has completed several phases of exploration and development work, including a PEA, a PFS and a revised PEA. Currently a Feasibility Study (FS) is underway and the results are expected in November. The project – which now has an indicated resource of 3,3 Moz – was originally contem- plated as a 3,4 Mt/a operation but the current FS is based on a 6 Mt/a plant throughput. This expansion has been made possible not only by a growth in the size of the resource at Block 14 but also the identification of a major water resource – known as the Area 5 aquifer – able to support this level of production. While a development decision by Orca will obviously have to await the results of the FS, it’s a fair bet that this is a project that is almost certain to go ahead – after all, no one is going to leave more than 3 Moz of gold just sitting in the ground. The Orca management – mainly drawn from the old Red Back Mining which was absorbed by Kinross in 2010 in a massive US$7,1 billion deal – has a good track record in African mining. The CEO is Richard Clark, who was President and CEO of Red Back, while the President is Hugh Stuart, who was VP Exploration for Red Back and oversaw the growth of the company’s gold resources to over 18 Moz. Kevin Ross holds the COO position. He too is a veteran of Red Back and during his tenure with the com- pany as COO directed the development of the Akwaaba Deeps underground mine in Ghana, the Chirano plant expansion, also in Ghana, and the Tasiast plant expansion in Mauritania. Interestingly, Australia’s Resolute Mining – which is currently developing one of the most advanced underground gold operations in the world at its Syama mine in Mali – now has a major stake in Orca with an almost 16 % shareholding. Announcing the C$22 million investment earlier this year, Resolute’s CEO, John Welborn, described Orca as “a first mover in a region which is host to the largest gold rush seen in Africa in centuries.” If current artisanal activity in Sudan contin- ues to grow and if Orca does eventually move into production, it is certainly not impossible that the country could dethrone South Africa from its position as the African continent’s big- gest gold producer. As they say, “Who would

This year is developing into the best year yet, as Sudan’s Minister of Minerals reported in July that production over the first six months of 2018 was around 63 tonnes, which means that the total for the year could easily be 120 tonnes.

have thought?” Arthur Tassell

October 2018  MODERN MINING  3

MINING News

Panoramic view of the Wahgnion site (photo: Teranga Gold). Teranga increases gold reserves at Wahgnion

Teranga Gold Corporation has announced the results of an updated Mineral Reserve Estimate (MRE) and feasibility study for the Wahgnion development project in Burkina Faso, West Africa. Teranga, which also owns the Sabodala goldmine in Senegal, is listed on the TSX. The update adds 450 000 ounces to open-pit reserves, increasing proven and probable mineral reserves at Wahgnion by almost 40 % to 1,61 million ounces (31,07 million ore tonnes grading 1,61 g/t). The initial proven and probable min- eral reserves in the 2017 feasibility study totalled 1,16 million ounces (21,40 million ore tonnes grading 1,69 g/t). The new min- eral resource andmineral reserve estimates,

based on the initial four deposits (Nogbele, Fourkoura, Samavogo and Stinger), include drill results from a 73 000-m infill drill pro- gramme completed in 2017. “The 40% increase inWahgnion reserves announced today (24 Sept) exceeded our initial guidance and expectations and, most importantly, led to an improved five- and 10-year production and cash flow profile relative to last year’s initial feasibility study,” comments Richard Young, Teranga’s President and CEO. “With average annual gold production of 132 000 ounces through to 2024, Wahgnion is expected to increase company-wide annual production by 50 % to between 300 000 and 350 000 ounces. This will generate free cash flow to fund our said most of the holes returned intercepts greater than 4 m at 10 % Total Graphitic Carbon (TGC) or better. “With the drilling now completed across both the Buffalo and Elephant deposits the team have delivered some spectacular results and confirmed additional mineralisation outside the cur- rent reserve estimate and we look forward to updating the mineral resource estimate for Buffalo using this data. We continue to see additional near mine exploration tar- gets available to define more tonnes in due course. “When you add this improved confidence to what is already a high-grade, low-cost project with constructionwell advanced and supported by offtake agreements, a granted

growth plans, and move us closer towards our goal of becoming a multi-asset, mid- tier gold producer inWest Africa.” Construction at the fully funded Wahgnion development project remains on track. Front-end engineering and detailed design is essentially complete, and the steel fabrication and equipment manufacture in preparation for delivery to site are on schedule. Despite a heavy rainy season, the concrete pour schedule for plant construction remains on track for the mill foundations, primary crusher, leach tanks and reclaim areas in preparation for the next phase of construction, mechani- cal and structural steel erection. Mining activities have commenced to Battery Minerals intends to commence graphite flake concentrate production at Montepuez within 14 months of com- pleting project finance at export rates of 50 000 t/a at an average flake concentrate grade greater than 96 % TGC. In December 2017 and January 2018, Battery Minerals signed four binding offtake agreements for up to 41 000 t/a of graphite concentrate, representing over 80 % of Montepuez’s forecast annual production. As Battery Minerals executes subse- quent expansions, it expects production from Montepuez to grow to over 100 000 tonnes per annum of graphite flake con- centrate by 2020.  mining licence and a port access allocation, it is clear that we are very well positioned to deliver an outstanding project.”

Battery Minerals reports high-grade drilling results ASX-listed Battery Minerals has announced exceptionally high-grade drilling results which will help underpin an update to a mineral resource and reserve estimate at its Montepuez graphite project in Mozambique scheduled for release in the December 2018 quarter.

According to the company, the results, which come from the weathered, close to or at surface zone of the Buffalo deposit, highlight the quality of the project’s min- eralisation and its ability to be a low-cost producer. The drilling targeted both infill zones and strike extensions to existing high- grade oxide mineralisation. Battery Minerals’ MD, David Flanagan,

4  MODERN MINING  October 2018

MINING News

Twin Hills gold anomaly doubles in size construct a tailings management facil- ity and to produce a large ore inventory ahead of plant commissioning. Staffing for operations has been progressing well with significant focus on the execution of the operations readiness plan. Additionally, community-housing construction is progressing well with the first wave of households successfully relocated. three promising new targets, including a series of gold-bearing veins discovered at Fairview, a sand-covered area 30 km east of Otjikoto. Osino is particularly excited about the Fairview target as this repre- sents the first new gold occurrence in the Otavi area since the discovery of Otjikoto in 1999. This target is open to the east and sampling is currently underway to estab- lish its strike extent.

Osino Resources Corp, listed on the TSX- V, has provided an update and results of the calcrete sampling programme being conducted along the Karibib Gold Trend to the south-west of the Twin Hills project in Namibia. The latest assays add a fur- ther 3,5 km to the contiguous Twin Hills anomaly along the Karibib Gold Trend and illustrate the district scale of the mineral- ising system discovered by Osino to date. Heye Daun, Osino’s CEO, commented: “We are excited about the maiden calcrete assays received along the Karibib Gold Trend which double the size of the Twin Hills gold anomaly. The initial drill results at Twin Hills, reported in July 2018, gave an indication of a large mineralising sys- temwith potential to continue to the west. This has now been borne out by the latest results which increase the strike length of the Twin Hills prospect to 8 km with the possibility of more to come.” In another development and updating on its Otjikoto East gold project (which is directly along strike from B2Gold’s Otjikoto gold mine), Osino says it has identified

“The project is running on schedulewith the first gold pour expected December 2019,” says Paul Chawrun, Teranga’s Chief Operating Officer. “The capital budget remains largely in line with the estimates outlined in the initial feasibility study. Half- way through our project commitments and near the end of the rainy season, we are not seeing any material increases other than unfavourable variances for fuel and foreign exchange, which is moderately impacting equipment, labour and material costs. The majority of our project contin- gency remains. “We have made great progress at Wahgnion,” he adds. “We have materially improved the first five-year cost profile, reducing all-in sustaining costs by US$43 per ounce compared to the previous plan. We have incorporated a high-grade stock- pile strategy, similar to Sabodala’s. And, we have extended the mine life to 13 years, delaying the deposits in the mine plan that are not yet fully drilled off.” The capital cost to construct Wahgnion is estimated at approximately US$240 mil- lion and includes provision for a processing plant, infrastructure, an owner-operated mining fleet and power plant, owner’s cost, contingency, taxes and duties. This represents an increase of US$8 million compared to the capital cost outlined in the 2017 Technical Report and is due to unfavourable variances with respect to fuel and foreign exchange. 

Osino aims to identify additional new gold targets on the remainder of the proj- ect area during 2018 before systematically drill testing these targets during 2019. As Modern Mining reported last month, Osino is managed by Heye Daun, CEO and co-founder, and Alan Friedman, President and co-founder, whowere also co-founders of Auryx Gold. In 2010, Auryx acquired the Otjikoto gold deposit near Otjiwarongo. After it expanded the resource and com- pleted a PEA on the project, Auryx was sold to B2Gold. B2Gold subsequently devel- oped Otjikoto into a highly successful gold mine (and only the second in Namibia, after Navachab). 

Drilling underway on the Karibib Gold Trend (photo: Osino).

October 2018  MODERN MINING  5

MINING News

Liqhobong produced 835 832 carats in FY 2018 compared to 365 891 carats in the prior year (photo: Firestone Diamonds).

Firestone Diamonds, listed on AIM, has released its final results for the year ended 30 June 2018 – representing the first full year of commercial production at its Liqhobong mine in Lesotho. According to the company, the year was marked by an “exceptional operational perfor- mance” which saw a 128 % increase in diamonds recovered to 835 832 carats, an 18 % increase in grade to 22 cpht, a 93 % increase in ore tonnes treated to 3,8 Mt and a 5 % decrease in operating costs to US$11,62 per tonne treated. The largest diamond recovered during Liqhobong delivers an “exceptional performance” the year (in September 2017) was a 134- carat gem quality light yellow diamond while the most valuable diamond recov- ered was a fancy pink diamond which realised a sale price of US$112 781 per carat. Revenue increased by 125 % to US$62,2 million and the loss for the year decreased by 91 % to US$14,2 million. The lower than expected frequency of valuable diamonds recovered and con- tinued low prices for the ROM category diamonds during the early part of the year resulted in lower than expected average diamond values achieved at sale, prompt-

ing a revision to the mine plan. The result was a shorter nine-year mine plan, which could be supported by a lower average diamond value of US$75 per carat, whilst retaining the optionality of taking advan- tage of the longer 14-year life of mine should realised diamond values increase or should there be a sustained improvement in market conditions. Liqhobong’s impeccable safety record was maintained throughout the 2018 financial year, reaching 6,2 million man hours worked without a single lost time injury at the end of the year. Firestone notes that the processing plant includes a conventional 3-stage crushing circuit which is designed to crush kimberlite and to liberate diamonds. “We do our best to minimise diamond damage; however, the recovery process is inher- ently abrasive and damage does occur as in all recovery plants to a greater or lesser extent,” says Firestone. “During the year, there was an increase in diamond damage which is assessed on all +5 carat stones recovered, which resulted in a thorough investigation into all possible areas where damage might occur within the plant. Pleasingly, the minor modifications made subsequently to certain parts of the plant and recovery areas resulted in a decrease in diamond damage to well within acceptable industry standards by the year end.” 

Zambia’s Munali nickel mine to restart in 2019 London-based Consolidated Nickel Mines (CNM) reports that it successfully concluded a transaction with Chinese-listed company Jinchuan in September 2018 to re-start the Munali nickel mine, located 75 km south of Lusaka in Zambia.

Working with the mine’s management team, CNM has spent the past two years conducting extensive evaluation and study work at Munali to put together a sustainable restart plan. A new geological model has been developed, a new JORC resource has been defined and a newminingmethod has been planned to extract the nickel from the orebody more efficiently and economically. Now fully funded for recommencement of operations in Q1 2019, CNM will produce its first nickel concentrate within that quar- ter. By Q3 2019, CNM says it will have met the production ramp up schedule, deliver- ing 60 000 tonnes of ore per month and 25 000 tonnes of nickel concentrate by the end of 2019. 

In excess of U$180 million has already been spent by the previous owners in developing the mine, installing a concentra- tor and bringing the mine into production. However, for a number of reasons, such as the use of the wrong geological model and hence the wrong mining method being employed, this led to uneconomic opera- tions when the nickel price fell, and the placing of the mine on care and mainte- nance at the end of 2011, says CNM.

6  MODERN MINING  October 2018

MINING News

Minergy awards contracts for Masama mine

tract for the washing plant has been awarded to Pentalin Processing. Contracts for the pro- vision of site and bush clearing, civil works, power reticulation, water and waste manage- ment, road construction and weighbridges are also in various stages of appointment. Bojé said that both Botswana and Minergy have a significant role to play in fulfilling the increased demand for coal, with 4 Mt of coal exported from South Africa to the African continent in 2016, which is forecast to rise to 38 Mt by 2030. The thermal coal price has also increased 33 % over the past 18 months, making it one of the world’s top five highest- performing commodities. “Investors looking to invest in coal have lots of opportunity now. The price of coal is rising, there is a deficit in supply and a strong demand, especially in the developing world, which is driving up the prices and keeping them high. In my experience, there’s never been a better time to invest in coal,” he said. He added that Minergy was confident that its production milestone of January 2019 for the final commissioning of the mine would be met, with the first saleable product available in February 2019. 

Andre Bojé, CEO of Minergy.

Minergy, the Botswana Stock Exchange (BSE)- listed coal mining and trading company which is developing the Masama coal mine in Botswana, has released results for the year ended 30 June 2018. While Minergy is still in the development and exploration phase, with the results reflect- ing expenditure and investment in capex typical of this, substantial progress has been made towards full operational status. The com- pany had also invested in infrastructure during

the year, including offices in Medie and Lentsweletau in addition to its head office in Gaborone. Andre Bojé, Minergy’s CEO, said the company was pleased to report such satisfactory progress, which had been signif- icantly boosted post year end by the granting of a mining licence. Bojé said that the mining licence marked a significant milestone for the company. “We are now able to break ground and invite contractors to start work immediately as well as to actively engage the local com- munities about job creation and upliftment programmes, includ- ing improving the school and the clinic in the village closest to the mine, Medie, as well as bringing in electricity.” The mining contract has been awarded to Jarcon, a joint venture between IPP, a South African company, and Giant Plant, a Botswana company. The Build-Own-Operate-Transfer con-

Masama is located on the south-western edge of the Mmamabula coalfield in southern Botswana.

October 2018  MODERN MINING  7

MINING News

Drilling rigs in operation in rugged terrain at Block 14. The latest resource estimate is based on 111 761 m of drilling in 756 holes (photo: Orca Gold).

Indicated resource at Block 14 grows to 3,3 Moz

ment of the economics and production potential at Block 14 and drill testing of additional high-grade targets previously identified. Block 14 has exceeded our expectations and continues to demon- strate that it has a lot more to offer. The delivery of our Feasibility Study will estab- lish the initial economics of this project and will form the base for further growth of this exciting gold camp.” The Block 14 gold project is located close to Sudan’s border with Egypt, 900 km north of the capital Khartoum. The conces- sion covers 2 170 km 2 . Access to the project is by sealed road along the eastern bank of the River Nile to the town of Abu Hamad and then via a well-used desert road to the project area.  intersections of vein-hosted mineralisation and all ten holes into the core of the A4 Dome have intersected visible NPF contact mineralisation. The grades are also strong, with assay results from all three NPF inter- sections received to date including intervals greater than 2 % copper at the base. “The proximity of A4 Dome to the planned T3 processing plant makes it an attractive proposition which supports our strategy to increase production above the current target of 30 000 kt/a copper and build a long-term operation centred around T3.” 

Canada’s Orca Gold Inc, listed on the TSX‑V, has announced an updated Mineral Resource Estimate (MRE) for its Block 14 gold project in the Republic of the Sudan. This estimate – based on 111 761 m of drilling in 756 holes – will form the basis for the Feasibility Study due for delivery in November this year. The MRE of the Galat Sufar South (GSS) and Wadi Doum deposits comprises an indicated resource of 79,9 Mt grading 1,30 g/t Au for 3,34 Moz of gold and an inferred resource of 18,5 Mt grading 1,2 g/t Au for 0,71 Moz of gold (at a cut-off grade of 0,6 g/t). Intercepts demonstrate a higher-grade core within both the GSS and Wadi Doum deposits. It is anticipated that this will

result in the mining of higher grades in the early years of the project, significantly impacting economics. “The drilling completed in 2018 has been specifically aimed at developing min- eral reserves as part of the Feasibility Study. Given the increase in the scope of the Block 14 project, driven by the 2017 discovery of a major fresh water aquifer system and the successful resource drilling campaigns, we expect to see a significant positive change in the scale and scope of the project with the delivery of the Feasibility Study in November,” comments Richard Clark, CEO and Director of Orca Gold. “Exploration will now focus on the expansion of high-grade zones identified at Wadi Doum towards further enhance- at the A4 Dome, being localised vein- hosted mineralisation in the upper part of the dome and Ngwako Pan Formation (NPF) contact mineralisation which may form a flat lying ‘blanket’ underlying the dome, 450-500 m below surface. “We’re still in the early stages of under- standing the A4 Dome; however, we are encouraged by the potential for significant mineralisation within this large target,” comments MOD’s Managing Director, Julian Hanna. “Two holes have intersected wide

MOD reports encouraging drill results from A4 Dome ASX-listed MOD Resources reports further very encouraging results from drilling at the 70 %-owned A4 Dome, 8 km west of its T3 project in the Kalahari Copperbelt in Botswana.

A4 Dome represents part of MOD’s T3 expansion strategy to define additional sources of ore within the T3 Dome Complex that could enable future increases in produc- tion through the proposed T3 process plant. As previously announced by MOD, there are two distinctive types of mineralisation

8  MODERN MINING  October 2018

MINING News

Top empowerment rating for Zest WEG

Steadily integrating its continuous improvement efforts alongside the trans- formation of its business, the Zest WEG Group recently achieved Level 1 status in terms of Broad-based Black Economic Empowerment (BBBEE) ratings. A subsidiary of the Brazil-based multi- national WEG, the Zest WEG Group is over 51,6 % black-owned, including a 32,1 % stake by black women, and was ranked as Level 2 last year. “Our real success here has been to ingrain our commitment to South Africa and to transformation in the everyday activities and culture of the business,” says Zest WEG Group Chief Executive Officer Louis Meiring. “Our empowerment jour- ney is not an annual tick-box exercise, but rather is driven by every staff member working to build local capacity, people and excellence.” Meiring emphasises that the business model has evolved to engage all employ- ees in maintaining the group’s focus

on quality and transformation. Reaching this pinnacle BBBEE rating has been the culmination of various efforts, according to Zest WEG Group Operations Director Juliano Vargas, and is just one indication of the investment that the group is making in the country’s economy and society. “We continue to invest in local manu- facturing and are improving our facilities to achieve high levels of quality and pro- ductivity,” says Vargas. “This also means developing the skills necessary and increasing our knowledge base in the lat- est technologies related to our production requirements.” From its position as an ISO 9001-listed business, ZestWEG Groupwas recently one of the first to upgrade to ISO 9001‑2015, making it one of only 112 companies out of 2 200 South African firms with ISO 9001 certification to reach this next level. The group has also recently invested heavily in its Heidelberg transformer

Louis Meiring (left), Zest WEG Group CEO, and Juliano Saldanha Vargas, Group Logistics and Operations Director at Zest WEG Group, with the certificate Zest WEG Electric (Pty) Ltd has received for its Level 1 BBBEE rating. manufacturing plant, where it operates one of the country’s leading test laborato- ries for transformers. 

October 2018  MODERN MINING  9

MINING News

Re-discovered kimberlites were past producers

State Colony into the Union of South Africa. The result was that per- mission to restart the mines was not granted. These mines were never reopened and their his- tory was lost with land ownership changes over time. Aerial imagery and

ground truthing have partially completed the jigsawwhich has enabled the company to focus its attention on areas within i t s Kopp i e s f on t e i n , Poortjie, Swartrandsdam and Tafelbergsdam prop- erties where historic workings and abandoned equipment are clearly evident. Available archived diamond certificates in respect of limited exploration activities around Tafelsbergsdam issued in 1898 dis- closed recovery of 111 carats of diamonds valued at approximately £93 each – which is estimated by Botswana Diamonds to be in excess of US$300/ct in today’s money. Following the initial document research work and ground truthing, the company has turned to modern science. This started with the taking of ground samples for whole rock geochemistry tests by the Council for Geosciences. The results of these tests and observa- tions confirm the existence of eight kimberlites which exhibit Group 1 kim- berlite geochemistry similar to the larger producing mines of Kimberley and Koffiefontein in the region. The existence

The Swartrandsdam kimberlite, one of the re-discovered Free State kimberlites (photo: Botswana Diamonds).

In an update on its Free State kimberlite exploration project, Botswana Diamonds, which has projects in both South Africa and Botswana and is listed on AIM, reports that further research confirms that some of the Free State kimberlites it has rediscov- ered were diamond producers. The potential of the Free State to host further commercial kimberlites was identi- fied following research in various archives into the history of diamond mining in South Africa. This research found that in addition to the well-documented iconic operations at Jagersfontein, Koffiefontein and Kimberley, a number of smaller dia- mond mines existed both to the east of Bloemfontein and extending west to Kimberley. Research undertaken during a field trip in September this year also found that in addition to the law at the time not requir-

ing formal documentation regarding any diamonds discovered, there was extensive document loss and destruction conse- quent to the Anglo Boer war of 1899-1902. In spite of this, much is still available and there remains considerable anecdotal evi- dence from the time. It was clearly noted that the industry as a whole was active up until the early 1880s, but that “a wave of financial collapse and depression swept over South Africa....”such that ...”even old established diggings like Jagersfontein, Dutoitspan and Bultfontein were partially abandoned and younger [smaller] mines.... were totally deserted”. It is evident – says Botswana Diamonds – that attempts were made to re-open these ‘smaller’ mines in the early 1900s but these were frustrated through bureau- cratic intervention due to conflicting laws in the lead up to the accession by the Free

10  MODERN MINING  October 2018

MINING News

of extensive historical working supports the nature of these kimberlites as being diamondiferous. Detailed ground geophysics followed which produced minimum sizes for the two clusters of eight kimberlite pipes of between 0,3 and 1,15 ha. Mineral chemistry work was then undertaken to rank the kimberlites from the perspective of diamond-bearing potential. The analyses of 3 100 gar- nets and spinels at the University of Johannesburg indicate high abundances of diamond inclusion type chemical com- positions, thereby rating these kimberlites as being of high interest in terms of dia- mond-bearing potential. The mineral chemistry result supports the conclusions from the previous whole rock geochemistry and from the geo- physics in addition to field observations. Botswana Diamonds believes it justifies moving to a phased drilling programme. Further announcements regarding the timing of the drilling programme will be made in due course. 

Thor lines up NORINCO for Segilola gold project Thor Explorations, listed on the TSX-V, has signed a Memorandum of Understanding (MOU) with NORINCO International Cooperation Ltd to enter into an EPC contract on a comprehensive lump sum turnkey basis (LSTK) to build the required plant and associated infrastructure for the company’s Segilola gold project in Nigeria.

The company expects to complete the DFS in Q4 2018, which will be supported by the EPC turnkey contract. The final terms of the contract are to be negotiated following the completion of the DFS. “We have been wor k ing with NORINCO International for the past year and there is an excellent level of coop- eration and understanding between Thor and NORINCO International,” com- ments Segun Lawson, President and CEO of Thor. “NORINCO International have provided a competitive EPC proposal priced on the Preliminary Feasibility Study design, which provides confidence that the project can be delivered on time and on budget by a well-established EPC contractor. The MOU offers a clear path to Thor achieving gold production at Segilola in 2020.” NORINCO International Cooperation is an incorporated company affiliated to China North Industries Corporation. It is listed on the Shenzhen Stock Exchange. 

The scope of the EPC turnkey contract covers the design, engineering, procure- ment, site preparation, construction, commissioning, performance testing and hand-over of the project and its associ- ated infrastructure. Thor is currently undertaking a Defini­ tive Feasibility Study (DFS) on Segilola. It is being prepared through the col- laboration of a number of specialist consulting firms including Roscoe Postle Associates Inc, GR Engineering Services Limited, NORINCO International, Auralia Mining Consulting and Knight Piesold Consulting.

MINING News

Year of achievement for Rainbow at Gakara project

ing of snags and teething problems, took place in the months up to the end of June 2018 and, by the end of the period, the plant was fully functional, with commercial production therefore considered to have been met from July 2018 onwards. The operation of the plant consists of two functions: the crushing and screen- ing of the ore; and the separation of waste material from the ore using gravity. The target run rate for concentrate pro- duction is approximately 400 tonnes per month, expected to be achieved by the end of 2018. Rainbow notes that at the time of its IPO in January 2017, it was different to ‘normal’ mining juniors in that it raised funds for production development with- out a resource calculation and, even more unusually, without a single drill hole hav- ing been completed. “We have made a great deal of progress over the past year addressing both of these unusual factors,” says the company. In early 2018 Rainbow undertook its ‘Phase 1’ drilling campaign, which focused on Kiyenzi and a number of the airborne anomalies. The results from the Kiyenzi drilling announced in April and June 2018 were very positive, indicating extensive rare earth mineralisation in a ‘breccia’ for- mation which is likely to be contained in a much more dispersed area than the nar- row veins at Gasagwe and Murambi, for example, and therefore could be more suited to mechanical extraction. The bulk of Rainbow’s ‘Phase 2’ drill- ing campaign took place throughout July and August 2018 and Rainbow says it is now looking forward to publication of its maiden code-compliant resource in the fourth quarter of 2018. In August 2018, Rainbow announced the signing of a co-operation agreement with TechMet Limited which will accelerate work towards developing the capabil- ity of further processing concentrate, in order to capture more of the downstream value. Under the terms of this agreement, TechMet will lead the work to complete a Definitive Feasibility Study (DFS) for a separation process, which is intended to be owned as a Joint Venture between the two companies. The DFS will be funded exclusively by TechMet on a reimbursable carry basis. 

Phase 2 drilling campaign at Kiyenzi in August 2018 (photo: Rainbow Rare Earths).

In its audited results for the 12 months ended 30 June 2018, London-listed Rainbow Rare Earths, the Rare Earth Element (REE) mining company, lists its achievements for the year, noting that it brought its Gakara mine in Burundi into production on schedule with first produc- tion and export of rare earth concentrate being achieved in December 2017. Some 575 tonnes of rare earth concen- trate at an average Total Rare Earth Oxide (TREO) of 58 % were exported by 30 June 2018 while 475 tonnes of rare earth con- centrate were sold at a gross average realised sales price of US$2 263 per tonne over the same period via multinational offtake partner thyssenkrupp Materials Trading GmbH. Mining operations began in earnest in August 2017 at the Gasagwe site. The removal of waste and overburden was largely undertaken by a small fleet of min- ing vehicles, including two tractor loader backhoes (TLBs), two haul trucks, a tractor/ trailer, and, during the second half of the year, two excavators. The ore at Gasagwe consists of a stock- work of veins varying in thickness between 3 cm and 20 cm. The mineralisation of these veins is in the form of monazite and bastnaesite, and the grade of the pure ore typically varies between 50-60 % TREO.

The mining of ore is primarily achieved usingmanual techniques, with a workforce of some 80 locally-recruited labourers removing the vein material from the host rock with hand tools. The ore is collected in bags before being sent to the plant site for processing. The manual extraction of the material ensures that dilution of the ore (essentially the extraction of clay saprolitematerial sur- rounding the vein) is kept to a minimum. The Gasagwe orebody is unique in many ways, and the mining methodol- ogy continues to evolve and improve, says Rainbow. The rate of ore extraction is primarily driven by the speed of strip- ping of waste to expose the veins, which was significantly improved by the use of excavators in the pit (as well as for the con- struction of haul and access roads). In the fourth quarter of calendar year 2018, it is intended that the commercial extraction of ore can commence from Murambi, the next targeted production area, to the east of Gasagwe. Ore processing takes place at the Kabezi plant, located approximately 13 km to the south of Bujumbura, and 20 km to the west of the mining area of Gasagwe. The construction of the plant at Kabezi was completed during the year. Ramp up of production, which involves the clear-

12  MODERN MINING  October 2018

MINING News

Drilling intersects significant mineralisation at Wassa “Wassa Underground has already proven itself as a profitable operation and we look forward to releasing an updated mineral resource estimate in February 2019 to further demonstrate its larger scale, longer term potential.”

intended to release the PEA during the second half of 2018, but due to the latest positive drilling results received and the plans to accelerate drilling going forwards, the company has decided to postpone it. This will allow further drilling to be com- pleted with the intention of gaining a more thorough understanding of the scale of the deposit and the opportunity it presents. 

Canada’s Golden Star Resources (GSR), listed on the NYSE American and TSX, reports it has intersected significant gold mineralisation 200 m down plunge to the south of the inferred mineral resource at its Wassa underground gold mine (Wassa Underground) in Ghana, demonstrating the extension of the deposit. These results are expected to increase Wassa’s inferred mineral resources. Significant intercepts included 64,3 m grading 7,4 g/t Au from 577,0 m and 49,7 m grading 5,5 g/t Au from 792,0 m in hole BS18DD391D1 (drilled depths from wedge); and 17,5 m grading 10,0 g/t Au from 1 369,70 m in hole BS18DD391M. Sam Coetzer, President and Chief Executive Officer of Golden Star, com- mented: “Earlier this year we announced that we had doubled Wassa’s inferred mineral resources to 5,2 million ounces of gold and these latest results demonstrate that the deposit is larger still. The deposit remains open down plunge and up and down dip so we believe that significant further upside potential exists. “With the strategic investment from La Mancha, we plan to accelerate drill- ing so that we can gain a more thorough understanding of the magnitude of the deposit. Our exploration team now has a robust understanding of the deposit’s geology and these results continue to confirm the consistent nature of the gold mineralisation.

Work is underway on a Preliminary Economic Assessment (PEA) for the south- ern portion of the Wassa deposit. GSR had

Portal of the Wassa underground mine (photo: Golden Star).

October 2018  MODERN MINING  13

MINING News

One of the drill rigs testing projected high-grade copper trends emanating from the northern part of the Kamoa-Kakula mining licence (photo: Ivanhoe).

Ivanhoe makes another major discovery in the DRC two decades of exploring in the region. “Given the early drilling success at Makoko, we are highly confident that we have the secret blueprint for additional exploration successes in the Western Foreland area in 2019 and beyond.

Ivanhoe Mines, listed on the TSX, has announced an important new discovery of high-grade copper on its 100 %-owned Western Foreland licences, west of the Kamoa-Kakula mining licence in the DRC. Ivanhoe holds an extensive land pack- age, totalling approximately 700 km 2 in the Western Foreland area. The company began exploration drilling on the licences in the third quarter of 2017. To date, the company has drilled more than 50 holes, the great majority of which have been in the Makoko Discovery area. Makoko is the first of multiple high- potential target areas identified by Ivanhoe’s exploration team to be tested by drilling. An initial, independent resource estimate for the Makoko Discovery is expected in the current financial quarter. In addition, Ivanhoe recently began explo- ration drilling on other targets identified in the Western Foreland area to test for high- grade copper. The Makoko discovery hole intersected 3,94 m (true width) of 5,46 % copper, at a 2,0 % copper cut-off, and 3,94 m (true width) of 5,46 % copper at a 1,0 % copper cut-off, from a downhole depth of 306 m. “ This latest discovery at Makoko validates our exploration model for the geologic features controlling the high-grade copper mineralisation in the region,” said Robert Friedland, Co-Chairman of Ivanhoe. “This model reflects the accumulation of in-depth, proprietary geological insights gained by Ivanhoe’s exploration team during nearly

“We are in the privileged position of owning 100 % of a massive exploration land package with outstanding geologi- cal potential next door to our Kamoa and Kakula discoveries. Kamoa-Kakula already has been independently established as the world’s fourth-largest copper project and still is growing. It has copper grades that are the highest, by a wide margin, of the world’s top 10 copper deposits,” Friedland added. “While some investors are focused on short-term issues such as the DRC Mining Code revisions and the upcoming presi- dential election, Ivanhoe’s philosophy is to think big and think long term. Our geo- logical team has done an outstanding job of executing our strategy to continue to add shareholder and stakeholder value by keeping the drill bits turning and deliver- ing spectacular exploration results. “The government of the Democratic Republic of Congo has encouraged inves- tors to continue their exploration efforts in the DRC. Ivanhoe’s team is the deter- mined and absolute global leader in exploration technology and success. Our talented and dedicated employees will continue to help the Congolese people unlock the full potential of their country’s mineral endowment.

“Our continued exploration successes in the DRC will continue to catch the fullest attention of the mining world,” Friedland said. Exploration on Ivanhoe’s Western Foreland licences began in July 2017, with the construction of all-season access roads, bridge construction and the devel- opment of new camp facilities. In parallel, Ivanhoe undertook airborne and ground- based geophysical surveys and revisited previously acquired geophysical and geo- chemical data sets. The interpretative work led to the definition of a number of prom- ising exploration targets, of which Makoko was the first to be tested with drilling. The initial discovery hole at Makoko, DD004, was drilled in September 2017. Follow-up and infill drilling has been ongo- ing since then.  The host sequence in drillhole DD046 from a downhole depth of 525 m to 536 m show- ing banded siltstone. The darker bands are fine-grained silstone with bornite. The angular haematitic conglomerate at the base of the hole is the Roan Conglomerate (photo: Ivanhoe).

14  MODERN MINING  October 2018

MINING News

Yanfolila to get a second ball mill

to evaluate the installa- tion of a secondary ball mill instead of the tertiary crusher. The conclusion drawn from this trade- off study was that with the addition of a second- ary ball mill the plant could maintain its cur- rent capacity of 1,24 Mt/a when processing 100 % fresh ore. When blended with 25 % oxide material, the throughput capac- ity increases to 1,4 Mt/a. The incremental gold recovered, and increased revenue associated with

AIM-listed Hummingbird Resources has approved the construction of a second ball mill at its new Yanfolila gold mine in Mali. The mill – which will cost approximately US$13 million – is due to be operational in Q3 2019. The Yanfolila crushing circuit is cur- rently a two-stage operation incorporating both primary and secondary crushing cir- cuits designed to treat a blend of oxide and harder ores. The original DFS plan was to add a tertiary crushing circuit in order to allow the plant to process 100 % hard fresh ore later in the mine life. However, the annual throughput was expected to decrease from 1,24 Mt/a to 1,0 Mt/a, when operating with 100 % fresh ore which led to the LoM average production dropping to 107 000 oz/year from 130 000 oz in the first full year of commercial production. A review of the scope for a tertiary crushing circuit indicated substantially higher costs and complexity of operation, hence a trade-off study was carried out

The second ball mill for Yanfolila under fabrication in Johannesburg (photo: Hummingbird).

cal control of and responsibility for the design and construction of the facilities in accordance with SENET specifications. SENET was the EPCM contractor who com- pleted the construction of Yanfolila and it was delivered on time and budget. 

installing a secondary milling circuit, out- weighs the higher operating costs and incremental capital costs. The project will primarily be undertaken by SENET who, under the terms of an EPCM contract, will assume and maintain techni-

October 2018  MODERN MINING  15

MINING News

New gold zone identified at Makabingui project

ASX-listed Bassari Resources, which is developing the Makabingui gold mine in Senegal, has reported the discovery of an encouraging new gold zone by its geologists about 800 m to the east of the Makabingui mineralised system of 1 Moz at 2,6 g/t. The geologists sampled eight rock chip samples with one of the samples returning a high grade of 4,2 g/t Au. The surface area has recently been mined by artisanal min- ers, confirming the new gold zone. Bassari says this new find demonstrates

that the entire Makabingui gold system is still open and appears to be swinging around the Sambarabougou granite in an easterly direction in continuation with the same Makabingui geological setting. The exploration team proposes to dem- onstrate the potential of this previously unknown zone by conducting an induced polarisation (IP) survey over the 800 m trend to provide better definition of the contact structures. This will be followed up by drilling. According to Bassari, the discovery

“opens up Makabingui to being a much larger system, probably containing much more gold than currently defined.” Bassari has also reported significant advancements in the pre-development work for the Makabingui project. These include completion of repairs to Bassari’s 500 Mℓ dam and the setting out of access roads to the Douta plant site to reflect the layout design required for Makabingui ore processing operations. In addition, the river crossing near Sambarabougou vil- lage has been repaired to give all weather

access to the village and Makabingui mine site. Repairs to some culverts at water crossings on the haul road from the Makabingui mine site to the Douta plant site have also been completed. An initial open-pit opera- tion is planned at Makabingui which will produce 174 000 oz of gold over a 3,4 year mine life. The processing rate will be 300 kt/a. Bassari already has a grav- ity plant on site which will be upgraded to treat hard rock ore from Makabingui, a water dam to supply water to the plant and an established camp to accommodate employees and mobile equipment. 

The existing plant at the Makabingui project site (photo: Bassari).

Drilling at greenfield site delivers positive results Endeavour Mining, listed on the TSX, reports positive drill results for the Fetekro greenfield exploration property, located in north-central Côte d’Ivoire approximately 500 km from Abidjan.

we are now excited to report the results from Fetekro, which is our most advanced greenfield exploration property. “The Lafigué target, located within the Fetekro property, has been the pri- mary focus of our recent greenfield exploration programme. The discovery of extensive mineralisation over such a large area, coupled with the identification of nearby prospects, is very encouraging. We are eager to publish a maiden resource later this year, which may bring us one step closer to achieving our second key objective within our five-year exploration programme – that of discovering a stand- alone greenfield project in West Africa.” Fetekro is located in the northern end of the Oumé-Fetekro greenstone belt which extends over 300 km in a north/north-east direction within the Proterozoic Birimian series of central Côte d’Ivoire. 

maiden resource estimate is expected to be published in Q4 2018 and a follow-up drilling programme is scheduled to start in the same quarter. In addition, a gold-in-soil geochemi- cal campaign was recently completed. Its preliminary assessment indicates the occurrence of additional targets located in proximity to Lafigué, where a drill pro- gramme has been scheduled for 2019. “We are pleased to continue to deliver against our two key objectives from our five-year exploration strategy outlined in 2016,” comments Patrick Bouisset, Endeavour’s Executive Vice-President Exploration and Growth. “Following the significant near-mine exploration suc- cess already achieved, in line with our first objective of extending mine lives,

Endeavour began exploration on the Fetekro property in March 2017, following a strategic assessment of its exploration tenements which ranked the property as a top priority target. Since then, a total of 312 Reverse Circulation (RC) and Diamond Drilling (DD) holes has been drilled, amounting to nearly 32 000 m. Drilling mainly focused on the highly prospective Lafigué target where a large mineralised vein system was defined over an area 2,5 km long by 0,6 kmwide, remain- ing open at depth and towards the east. All available data is being interpreted and a

16  MODERN MINING  October 2018

Made with FlippingBook - professional solution for displaying marketing and sales documents online